RE:More speculationBarstoolSage wrote: It could simply be that the debenture holders were getting nervous, and SPR was getting nervous about the looming maturity. Instead of being able to rely on conversion at maturity (and it cannot be done before--was looking to see if this was a "forced conversion to get the debt off the books"), absolutely no bond holder would be prepared to take anyhting than cold hard cash if the conversion ratio was at 75cents ps.
Note too that the related 90c warrants will definitely not be in the money at maturity and no mention is made of these...which may have been an additional factor in the repricing
That IMO is the simplest explanation of the face value of this...unless someone else can come up with something simpler.
But if so, even as it is probably a prudent move, it is not a good sign because management is betting the SP will NOT be at least the conversion price at maturity...and the SP will definitely settle back.
Of course I could still be in shock at seeing Munch with his guns and guitar sprawled out which has caused several brain cramps, involuntary shudders and a dry heave or three
Sorry BSS, I meant no harm with my post - it was the tequila posting. I pledge to refrain from such lewd posts going forward
Random thoughts:
- SPR would be unable to pay back the debt in Oct.
- Debt holders anticipate this and walk down share price to maximize leverage
- SPR existing shareholders screwed with heavy dilution
- There's a chance this is a precursor to some good news. Only reason I think this is I question why they amended this now when the Debentures don't come due until Oct
Never saw an NR put out on a Friday that was good news...